US Oil Futures Crash Below Zero

US oil futures traded in negative territory on Tuesday, after sinking nearly $40 the previous session in their first ever dive below zero, as concern grew the sector will run out of storage for a glut caused by the coronavirus lockdown.
Global benchmark Brent crude also fell in response to the collapse of demand following reduced economic activity, Reuters reported.
US West Texas Intermediate crude for May delivery traded at minus $2.58 a barrel, up $35.05 from Monday’s close when the contract settled at a discount of $37.63 a barrel.
The slump in the US contract was exaggerated by the looming expiry late on Tuesday of the front-month contract for delivery of oil in May when the lack of storage is set to be particularly acute.
The more-active June contract slipped 23 cents, or 1.1%, to $20.20 a barrel. June trading volumes were roughly 80 times those of the expiring May contract.
Global benchmark Brent crude for June delivery was down $3.22, or 12.6%, at $22.35 per barrel.
Restrictions on movement to try to contain the novel coronavirus have reduced oil demand by an estimated 30%, resulting in a huge surplus of crude in need of storage.
The main US storage hub in Cushing, Oklahoma, the delivery point for the US West Texas Intermediate contract, is expected to be full within weeks.
Anxious to bolster the earnings of the US oil industry, President Donald Trump said on Monday his administration would consider halting Saudi crude oil imports.
The Organization of the Petroleum Exporting Countries and its allies agreed this month to cut output by 9.7 million barrels per day. But that cut will not take place before May, and is not considered enough to restore market balance.